Lawsuits

There's going to be more and more lawsuits cropping up with everyone blaming everyone else for their real estate losses.

Its going to get very ugly. Here's a sample from Tampa, Florida ...

Lehman Bros. Sues Over Pasco Condos

TAMPA - A New York lender fears it is on the hook for millions of dollars in loans that now total more than the New Port Richey properties are worth.

Lehman Bros. Holdings, the global financial services corporation, filed suit in Tampa on Tuesday against a group of investors, title companies, a mortgage company and an appraisal company involved in potential mortgage fraud at a Pasco County condominium complex.

Sunset Bay Club has three-story triplexes that each have five bedrooms and a shared kitchen. The bedrooms, according to the lawsuit, are leased primarily to senior citizens.

Fifteen defendants used overvalued appraisals in a "scheme to defraud" the bank, according to the lawsuit. The 13 properties each were appraised for $733,000. The lawsuit says the triplexes are worth "barely one-third" of that value.

Say it ain't so. Inflated appraisals? Not only is it so, its par for the course.